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The Conceptual Framework (CF) allows for the systematic adaptation of accounting standards to a changing business environment. FASB uses the CF to aid in an organized and consistent development of new accounting standards. The CF outlines the objectives of financial reporting and the qualities of good accounting information, precisely defines commonly used terms such as asset and revenue, and provides guidance about appropriate recognition, measurement, and reporting. Understanding the terminology associated with the framework is imperative.
Download the Rubric and answer each of the 20 questions as indicated in the Assignment instructions.
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